COLUMN-Futures may legitimize Bitcoin, but let it infect other markets: McGeever
This is about the market-to-market contagion that could spread if large banks or leveraged speculators like hedge funds, having taken on big positions in bitcoin futures, find themselves on the wrong side of a sudden and dramatic price swing. Although the financial world simply does not have enough exposure to the sector to cause concern right now, growing participation of hedge funds and their banks via the new futures creates a link and risk that a bursting of what many see a gigantic bubble could leak into other markets. Hedge fund assets under management are nudging $4 trillion and the bitcoin universe is $280 billion. Even (Taiwan OTC: 6436.TWO - news) if hedge funds do wade into bitcoin, how deep can they go?